EFSI and InnovFin
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Transcript of EFSI and InnovFin
European Investment Fund
Pier Luigi GilibertDen Hague, 31 March 2016
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New EU Programmes helping businesses at every stage
SME Development Stages
PRE-SEED PHASE SEED PHASE START-UP PHASE EMERGING GROWTH DEVELOPMENT
HIGHER RISK LOWER RISK
EIB Programmes
SME Initiative
InnovFin SME Guarantee
ERASMUS+ Master Student loans
Cultural and Creative Sector Guarantee Facility*
Guarantees and debt programmesEquity programmes
COSME Equity Facility for Growth
InnovFin Tech Transfer*
InnovFin SME Venture Capital
EaSI (Employment & Social Innovation)
COSME Loan Guarantee Facility
* Not yet signed
Guarantees – Business model
We work with a wide range of counterparts and products to support SMEs:- through portfolio guarantees- based on a full delegation model to the Financial Intermediary with pre-defined eligibility criteria
Resources and Mandators European
Investment Bank European
Commission Member
States/regions Managing
Authorities Corporates/private Public institutions Other third parties
Intermediaries and counterparts Commercial Banks Development &
Promotional Banks Guarantee
Institutions Leasing Companies Microfinance
Institutions Debt Funds
Micro-enterprises,
SMEsand
Small mid-caps
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The SME Initiative
General Overview
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The SME InitiativeGeneral Overview
Key objectives Leverage the EU budget by mobilising private resources Incentivise Financial Intermediaries to extend new debt
instruments (loans, leases, guarantees) to SMEs Enhance access to SME finance through a reduction of the
overall interest rate charged (transfer of financial benefit) Provide loan loss protection and capital relief on the portfolio to
be originated Two risk-sharing instruments endorsed by the European Council:
1. Option 1: Uncapped portfolio guarantee facility for portfolios of new SME loans/leases• Up to 80% guarantee rate• Signed mandates in Spain, Malta and Bulgaria
2. Option 2: Securitisation instrument for portfolios of both new and existing SME loans, where the originators undertake to provide new financing
* European Structural and Investment Funds (“ESIF”)
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EFSI implementation through EIF
Targets and achievements
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The multiplier effect Leveraging on EUR 5bn to reach EUR 75bn
EFSISMEWEUR 5bn
EUR 2.5bn provided by
EIB EUR 2.5bn guarantee
cover provided by
EFSI
- Accelerated and additional
financing support to SMEs and
SMCs- Removing market gap
EUR 75bn of investments at SME and SMC level
EFSI total size of EUR 21bn:• EUR 16bn is deployed through EIB
Infrastructure and Innovation Window• EUR 5bn deployed by EIF through SME
Window (SMEW)
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SME Window implementationEFSI boosts InnovFin
High leverage effect of EFSI Enables stable and continuous
rollout in spite of annual budgetary contribution cycle
Additional first loss cover provided by unfunded credit protection from EIB to EIF
EIB will be counter-guaranteed by EU under EFSI
EFSI approvals and signatures at 15 March 2016
Total approved of
EUR 3.4 bn
Mobilised investments of
EUR 46.1bn
Expected to benefit more
than 131,700 SMEs and mid-
caps
68% €5bn target
61% €75bn target
71% of EU 28 countries
Via 158
financial transactions
Leveraging RCR
COSME INNOVFI
N resources
Reaching SMEs
across 20
countries9
EFSI approvals and signatures at 15 March 2016
* Covered countries in blue excluding some “multi-country“ equity investment funds
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Reaching SMEs across 20 EU Member States■ Countries covered under
EFSI■ Countries not covered
under EFSI yet
THANK YOU FOR YOUR
ATTENTION
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